It’s almost hard to believe that 2014 is coming to an end soon.
The year started off with some skepticism about the strength of the Canadian housing market. We heard a lot about “housing bubbles” and “soft landings”. Well so much for all those “bubbles”.
As per the Canadian Real Estate Association (CREA), the national average sale price rose 5.9% on a year-over-year basis.
The fact remains that Canadian homeowners are better off financially compared to last year. The demand for home ownership didn’t waver at all and continues to look strong for 2015 despite the gloom and doom in the media.
There was also a lot of discussion about how soon the Bank of Canada would raise its bench mark interest rate. It seemed like we waited with great anticipation all year for an interest rate increase that never came. The Bank of Canada rate still sits at 1%.
TD bank Senior Vice President and Chief Economist Craig Alexander recently reported that he predicts that it’s likely that the Bank of Canada won’t increase the bank rate until October 2015. This is and has been great news for many Canadians who have already taken advantage by refinancing existing high interest debt or moving up to a larger home.
“The continuation of extraordinary low mortgage rates has been and will continue to be the key support for home sales activity amid continuing price increases in some of Canada’s most active and expensive urban centers,” —Gregory Klump, CREA Chief Economist.
Buying your first home or refinancing your home is the biggest financial decision you will most likely make. It’s no surprise that 48% of first time homebuyers and 40% of repeat home buyers rely on the advice and counsel that only true mortgage professionals like us can deliver.
If you’re thinking of buying your first home, moving up, or refinancing other higher interest debt, today might just be the best time of the year to do it.